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Comprehensive Problem 3 Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2018. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the normal" balance for that account. (Hint: The normal" balance is the same as the debit or credit side that increases the account.) 13,350 2,600 Accounts payable Accounts receivable Accumulated depreciation: office equipment Additional paid-in capital (common stock) Bonds payable (due December 31, 2021) 23,100 Cash Common stock (2,400 shares, $10 par value) Cost of goods sold Deferred income taxes Depreciation expense: office equipment 2,700 Dividends declared Income tax expense Insurance expense Land Merchandise inventory Notes payable (due December 31, 2019) Office equipment Office supplies Office supplies expense Preferred stock (280 shares, $20 par value) Premium on bonds payable Prepaid rent Rent expense Retained earnings (January 2018) Salaries expense Sales Sales returns and allowances Sales taxes payable Treasury stock (400 common shares at cost) Utilities expense 12,600 7,800 14,800 24,000 105,280 5,950 4,700 7,940 900 39,500 20,900 3,100 43,000 880 460 5,600 2,100 1,800 5,300 21,450 87,720 226,200 1,800 3,600 4,500 4,070 Comprehensive Problem 3 Part 1 a. Prepare an income statement for the year ended December 31, 2018. Mountain Sports, Inc Income Statement For the Year Ended December 31, 2018 Net Sales Operating expenses